Auto dealer Randy Nehring has purchased land between Lowe's and Hy-Vee along West 26th Street. / Jodi Schwan / Sioux Falls Business Journal

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After years of being eyed by national retailers, a large property near Interstate 29 is off the market.

Randy Nehring, who owns Sioux Falls Ford and Luxury Auto Mall of Sioux Falls, bought the 15-acre parcels known as Lorraine Town Centre, which is south of 26th Street and is anchored by Lowe’s.

Nehring has not announced plans for the site, which has a long history on the market.

Commercial broker Kristen Zueger started working on Lorraine Towne Center nearly 10 years ago with the Lowe’s deal. Property owner Omaha-based Noddle Cos. envisioned developing the rest of the land into a retail center, Zueger said.

“And it would have interest off and on throughout the years of various size ranges,” said Zueger, who is affiliated with Van Buskirk Cos. “Everything from junior (big) box (retailers) to soft-goods retailers to smaller local users.”

Zueger said that by late 2011, there was significant interest from retailers such as Jo-Ann Fabric & Craft Stores, which ultimately located at 41st Street and Kiwanis Avenue, and Golden Corral restaurant, which also never inked a deal.

Costco Wholesale Corp. looked at the property, too, according to Ron Nelson of Nelson Property Consultants, who showed the company multiple sites in Sioux Falls.

“That was the first one I presented to Costco,” Nelson said. “I thought it was the perfect site … but it just wasn’t big enough. The configuration didn’t work for them.”

Costco ended up choosing the former Williams pipeline site near 41st Street and Grange Avenue.

That led Nelson to present the Lorraine Towne Center option to Nehring, whom he’d worked with as far back as 2002 to scout property for development.

“We joked, Randy and I, that in many respects the assignment was similar to Costco in that they’re somewhat of a destination location,” Nelson said. “People will seek you out, so a half-way, high-profile, high-visibility location, but for a block that size you only have certain options.”

Nehring bought the land in early April for $5.1 million.

It might present a future option for his Sioux Falls Ford store, which is on The Empire Mall campus and operating under a lease that runs for several more years.

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“Future development plans are not yet decided,” said Chuck Eide, general manager of Luxury Auto Mall. “For the foreseeable future, we’ll continue to operate our Ford store right where it is.”

The Ford dealership opened in 1972 and sits on a property about half the size of Lorraine Towne Center.

“Business is excellent, and yes, we’re a little crowded,” Eide said.

If the dealership were to relocate, it would open up some of the most sought-after retail property in the region. Because the site is on the mall’s campus, it likely would draw interest from national chains that might not already be in the market.

“There would be significant interest,” Zueger said. “Everything from the current mall ownership, I would imagine, to other retail developers or users.”

While no one involved in the deal is predicting any fast moves, both brokers who worked on it praise Nehring’s vision for the property.

“He just has an unbelievable design for that center,” Nelson said. “And look what he does. Look at Mercedes, Cadillac, the Luxury Mall. He was very creative with design and architecture and dealership planning, so take that to the next level.”

Zueger echoed the thought.

“Randy’s a visionary, and I think he has the ability to be very successful with that property,” she said. “It was a win-win.”